Rural insurer reports $3.3m in losses

Rural insurer reports $3.3m in losses | Insurance Business

Rural insurer reports $3.3m in losses
Rural insurance company FMG has recorded a loss of $3.3 million this financial year, driven by the Kaikoura earthquake.

“As a mutual we take a long-term view to relationships and business. Given the volatile nature of our industry we anticipate a loss from time to time, and are therefore well placed to manage this year’s result,” FMG Chief Executive Chris Black said.

The insurer’s paying claims hit record high of $152 million, up by $15 million from last year.

“With the Kaikoura Earthquake, we’re making good progress and have now settled 40% of our 3,300 claims. We remain on track to be three-quarters complete one year on in mid-November. We will have achieved this while at the same time responding to the much higher level of non-earthquake claims, including those related to ex-cyclones Debbie and Cook,” Black said.

Overall, the business is financially sound, Black said. “We have $226m in reserves, an A (Excellent) credit rating and 2.25 times the minimum capital required by our regulator, the Reserve Bank of New Zealand.”

FMG’s client numbers were up by 6%. Its income growth for the Mutual was at 9.5% with expense growth of just 4.6%. The personal insurance side of the business registered a double-digit growth from the previous year.  

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Private insurers paid out $0.5 billion in Kaikoura quake claims